Bernanke Says Fed Could Slash Balance Sheet in Half

Former Federal Reserve Chair Ben Bernanke expects the Fed could reduce its $4.5 trillion balance sheet by as much as half.

“I think they’re aiming for something in the vicinity of $2.3 to $2.8 trillion, something like that,” he said Monday on CNBC’s “Squawk Box.”

Bernanke did not expect the Fed would return its balance sheet to pre-crisis levels of less than $1 trillion.

During the financial crisis, the monetary-policy setting Federal Open Market Committee bought a massive amount of assets and cut short-term interest rates to near zero in an effort to stimulate the economy.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza